SAN FRANCISCO — Apple Inc. Chief Executive Steve Jobs says he might have overcome the two biggest stumbling blocks facing digital movie downloads: a dearth of things to watch and a reluctance by consumers to fire up their computers to watch a movie.
Jobs unveiled a long-rumored movie rental service through Apple's iTunes Store during his keynote speech Tuesday at the Macworld Conference & Expo. But he added the surprise that the service included films from each of the major studios, and that an upgrade to the Apple TV set-top box would let users order digital movies directly from their televisions via remote control.
"I think we got it all together," Jobs said. "There is no computer involved here. They are doing it on their couch on their wide-screen TV."
Jobs also wowed the crowd with the MacBook Air, a new laptop that he called "the world's thinnest." The $1,799 computer, which will start shipping in two weeks, weighs 3 pounds and is so thin that Jobs showed it fitting comfortably in an inter-office mailing envelope. It comes with five hours of battery life, a full-size keyboard and a 13.3-inch screen.
He also said Apple had sold 4 million iPhones since they went on sale in June. Analysts said Wall Street had expected more, which could have contributed to a 5.5% drop Tuesday in Apple's stock price, to $169.04.
The movie rental and Apple TV developments could help Apple, which played a key role in creating a legal online music market with its iTunes store, become the central gateway in the future of digital entertainment, analysts said.
"This is to the movie and the TV industries what iTunes has been to music," said Michael Gartenberg, an analyst with Jupiter Research.
But the service has drawbacks that could limit its appeal. It is expected to offer just 1,000 films by the end of February. New films won't be available for download until 30 days after the DVD is released. And there are some restrictions that might confuse consumers.
Older films cost $2.99, newer releases cost $3.99 and high-definition versions cost $1 more. Once customers have started to watch a movie they have 24 hours to finish it (or watch it multiple times). Unwatched movies disappear after 30 days.
Apple TV is the company's response to a problem nagging many consumer electronics makers: how to make it easier for people to watch Internet videos on the home's biggest screen -- the television.
